1 week Ago
Question: I sold my car to someone who paid with a post-dated cheque. But the cheque bounced because the buyer's signature was wrong. It seems he did it intentionally.
What are my rights in this case? Answer: In the UAE, the essential elements required for a cheque include the following: the word "cheque" written in the same language as the instrument; an unconditional order to pay a specified amount; the name of the drawee (the person obliged to make payment); the payee (the person receiving the payment); the place of payment; the date and location of the cheque's issuance; and the signature of the drawer are outlined in the Article 627 of the Federal Decree-Law No. 50 of 2022 Issuing the Commercial Transactions Law, which states, Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“The following particulars shall be contained in the cheque: 1. The word cheque is written in the body of the instrument in the language in which the instrument is written. 2.
Unconditional order of payment of specific amount of money. 3. Name of the person obliged to make payment (drawee) 4.
The person to whom payment, or to whose order the payment should be made. 5. Place of payment.
6. Date and place of execution of the cheque. 7.
Signature of the cheque executor (drawer).” Furthermore, a person shall be sentenced to imprisonment for a period not less than six months and not more than two years and/or pay a fine of not less than 10 per cent of the value of the cheque, with the minimum amount of Dh5,000 and not exceeding the double of the value of a cheque for intentionally signing a cheque incorrectly. This is discussed under Article 675 of the UAE Commercial Transaction Law, which states, “Everyone who commits either of the following actions shall be sentenced to serve prison for a period of not less than (6) six months and not more than (2) two years and/or pay a fine of not less than (10 per cent) of the cheque value, of minimum (5,000) five thousand Dirhams, and shall not exceed the double of the value of the cheque: a.
Instructs or requests the drawee, before the drawing date, to dishonour a cheque issued thereby in other than the cases set out in Articles (651) and (656) hereof. b. Closes the account, withdraws the whole balance therein or knows of closing of the account before the issue of cheque, or before the presentment of the cheque to the drawee for drawing, or intentionally causes the freezing thereof.
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